By 2012, the UK public sector will be spending £729m on shared services, analysts predicts, as shared service expenditure enjoys a compound annual rate of eight per cent.
Shared services, where government department share back-office facilities, such as HR, payroll or IT systems, is one of the lynchpins of money saving initiatives set out in the Gershon Report published in 2004.
According to analysts at research house Ovum, the total spend on shared services in the public sector between 2007 and 2012 will amount to £3.9bn.
Ovum analyst John O'Brien said in a research note: "We remain convinced of the opportunities over the long term, although we believe the market will evolve at a slower pace than previously expected."
The area within shared services projects which is likely to experience the fastest growth is outsourcing, which Ovum expects to grow at a compound annual rate of 24 per cent, albeit from a relatively low base.
O'Brien continued: "By 2012, government will be looking at where it can drive further efficiencies from these shared service programmes. One outcome of this next phase could be a shift from internal to outsourced shared services models."
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Quelle/Source: Silicon, 17.11.2008
